Opinion
RSG And Palm Oil Production
Agriculture has since ancient times been an important human activity. Its importance to man is in various aspects, such as, being the source of many kinds of food for the nourishment of the human body, the provision of employment for millions of people, and producing different types of raw materials for industrial use.
Hence, both the pubic and private sectors are involved in agricultural research and production if the growing human population is to have enough food to eat, if the growth in unemployment is to be largely checked, and, if many industries are to have appropriate and sufficient raw materials for the production of goods.
The importance of agriculture is better appreciated in times of food scarcity, a situation that compels those threatened by starvation to shift their priorities from the purchase of not so essential items to more food to stem the pains of going on an empty stomach.
In Rivers State, the land is so fertile as to easily support the production of many kinds of food and cash crops. But the people’s interest in farming has largely waned owing to a number of reasons, including the fact that farming is usually labour intensive. It has therefore been seen as an occupation of drudgery. Youths, who form the most energetic component of the population of the state, are not prepared for such drudgery. The popular thing among them as far as occupational pursuit is concerned is the search for white collar jobs. The weak and the elderly, who out of having no choice, are now mostly involved in food production.
But the prevailing uncheering circumstance would likely not last for long, as the administration of Rt. Hon. Chibuike Amaechi is encouraging agricultural production in the state by providing various incentives to those prepared to engage in the noble profession of farming. It is doing this through the, training of farmers, provision of loan facilities, rendering advisory services, and ensuring the availability of necessary equipment.
One area where the administration is making noticeable progress as far as increase food production is concerned is as regards palm oil production. Scarcely is there any home in the state where palm oil is not frequently used in the domestic cuisine. Reddish in colour, palm oil is extracted from the fruit of the oil palm tree, a graceful tree commonly found in the forests of most parts of the state. It’s trunk is straight, and at its top is a crown of petiolated leaves running out from the two opposite sides of a long stalk.
When the wind blows strongly the stalk of leaves sways with an attraction that announces God’s creative genius. The fruits of this tree are in bunches, and when ripe their usually partly reddish skin has beneath it a mesocarp rich in this kind of edible oils, that gave to this part of the country, in the days of yore, the name “Oil Rivers”.
The place of palm oil in industrial production is as important as what it can give to our cookery. Palm oil is used in making soap, margarine, and candles, and for other industrial purposes. Its inner kernel is also rich in oil that is used in making margarine, cooking fats and detergents. And with the extraction of oil from the kernels the residue is used as livestock feed; while the tapped sap from the tree is the popular palm wine that pleases the palate. Moreover, from the leaves of this tree comes brooms that keep millions of homes clean, especially in many parts of West Africa. These are just some of the products of the oil palm tree that have given it exceptional significance in its tropical home.
But its ripe fruit is so much sought after, not only by birds, snakes and other wild animals but also by man. The growing demand for palm oil for cooking and industrial use has therefore called for more efficient ways of processing this fruit for oil. It is in this direction that the Rivers State Government has exhibited remarkable initiative designed to improve palm oil production in the state.
Already, it has taken a crucial step as far as the oil palm is concerned in its agricultural scheme by planning to buy back the shares that were sold to private Rivers State investors in its oil palm estate, RISONPALM to enable investors have interest in this massive oil palm farm. This is a move that would attract private investors to invest in RISONPALM, thereby turn around the fortunes of the estate for the better. This turn around is expected in the long run to be manifested in increased production of palm oil and other products.
Furthermore, Government has built 16 oil mills across the state. The process on the test running of the mills has commenced. Speaking during the inspection of the Obeakpu Ndoki palm oil mill, the State Commissioner for Agriculture, Mr. Emmanuel Chinda explained that the projects represent Government’s commitment towards the actualization of its Accelerated Development Oil Palm Initiative (ADOPI).
He had rightly stated during the inspection that Rivers State was a major palm belt, and that the projects would add value to the output of farmers in the state. Besides this, it should be noted that these mills are bringing decency and modernisation to palm oil production in the state. Comparatively, the age-long traditional process of production is characterized by so much unhealthiness and application of human labour.
What the State Government has done in respect of building the Oil Palm Mills would no doubt be of benefit to many palm oil producers in the state, as their income is likely to improve through the use of these factories. And with these mills now being ready for full operation a major leap has been taken in diversifying the economy of the state from the petroleum sector to agriculture. With further reasoning, it could be found that the economic potentials which the oil palm presents to the state are not being allowed to waste, for Government has through the installation of these mills begun the singing of a new song that tells the people that their lives could be made better if they neglect not the oil palm tree.
We commend Gov-ernment’s initiative in setting up these palm oil mills as they would give to the people a very fine grade of palm oil, as they point to the fact that agricultural economics could still find a good footing in the oil palm tree, and as they depict improvement in the process of producing the commodity in the state. The installed equipment should be protected against vandalization by the communities where they are sited so that they would for so many years serve the purpose for which they were built.
Kikpoye-Jonathan is a staff of the Rivers State Ministry of Information.
Neville Kikpoye-Jonathan
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Fuel Subsidy Removal and the Economic Implications for Nigerians
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo
